Mortgage total question: The Hills obtain a 30-year, $144,000 conventional mortgage
The Hills obtain a 30-year, $144,000 conventional mortgage at a 4.5% rate on a house selling for $180,000. Their monthly mortgage payment, including principal and interest, is $729.63. They also pay 2 points at closing. Determine the total amount the Hills will pay for their house over 30 years.
I began by multiplying the 30 years by 12 months to get 360. 729.63 x 360 = 262,666.80. To find the 2 points that were paid I did 2% of the 144,000 of their mortgage rate, which got me to 2,880. I then added the two numbers together 262,666.80 + 2,880 = 265,546.80
This is kicking back an incorrect answer on my homework. Where am I going wrong in this process?
The Hills obtain a 30-year, $144,000 conventional mortgage at a 4.5% rate on a house selling for $180,000. Their monthly mortgage payment, including principal and interest, is $729.63. They also pay 2 points at closing. Determine the total amount the Hills will pay for their house over 30 years.
I began by multiplying the 30 years by 12 months to get 360. 729.63 x 360 = 262,666.80. To find the 2 points that were paid I did 2% of the 144,000 of their mortgage rate, which got me to 2,880. I then added the two numbers together 262,666.80 + 2,880 = 265,546.80
This is kicking back an incorrect answer on my homework. Where am I going wrong in this process?